S Chand And Company Limited · NSE:SCHAND
S Chand And — Q3 FY2021 Earnings Presentation
44 slides from S Chand And's earnings presentation, Feb 12, 2021
Slide 1: Cover letter to stock exchanges
_,_ � T S Chand And Company Limited Registered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. S.CHAND P:+91 11 4973 1800 I F:+91 11 4973 1801 I E: info@schandgroup.com I www.schandgroup.com ---• GROUP Date: February 12, 2021 To To Listing Department Listing
Slide 2: Q3 – FY2020-21 Investor Update
S. Chand and Company Limited Q3 – FY2020-21 Investor Update 12th February 2021
Slide 3: Summary
SUMMARY 1. Q3FY21 & 9MFY21 Highlights 2. Financials 3. Looking Ahead 4. S. Chand Ed-Tech Initiatives - Annexure 2
Slide 4: Q3FY21 & 9MFY21 Highlights
SUMMARY Q3FY21 & 9MFY21 Highlights - Digital Business Update 1. - Company Highlights – Best 9 Month Performance in S Chand’s History 3
Slide 5: Digital Business Update – Learnflix & Mylestone
DIGITAL BUSINESS UPDATE – LEARNFLIX & MYLESTONE • Learnflix App (Affordable Personalised Student App) targeted to • Mylestone: Digitally enabled School Curriculum Solution for the Next Half Billion (NHB) audience has got strong response in the K-8 segment is now ready to grow exponentially. past 12
Slide 6: Digital Business Update – Educate Pilot Completed
DIGITAL BUSINESS UPDATE – EDUCATE 360 PILOT COMPLETED • Madhubun Educate360 is the newly conceived K-12 Blended learning solution for enabling schools to conduct online classes, student assessments, e-book support etc. as a response to the Covid-19 crisis. This product is NEP 2020 compliant supporti
Slide 7: Digital Business Update – Other Assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS • Process of Carve out of Mylestone and Learnflix initiated, shareholder approval sought though postal ballot and expected to be completed by early March 2021. • Convergia would house Learnflix and Mylestone. The company is meeting various investors to raise US
Slide 8: Country Wide Status of On-Campus / Blended Learning
COUNTRY WIDE STATUS OF ON-CAMPUS / BLENDED LEARNING • CBSE & ICSE have come out with circulars for schools recently to start the new academic year from April & March respectively subject to state government instructions. • Current Status-: • K6-K12 – Schools have opened and students are moving back
Slide 9: Best 9 Month Performance in Company's History
BEST 9 MONTH PERFORMANCE IN COMPANY’S HISTORY - INSPITE OF COVID CRISIS DURING 9MFY21 (Rs m) 9MFY18 9MFY19 9MFY20 9MFY21 Revenue from Operations 1,398 729 975 1,425 Other income 60 74 40 104 Total income 1,457 803 1,015 1,530 Covid-19 Impacted Year Expenses Cost of published goods/materials consumed
Slide 10: Slicing the Data – Calendar Year Perspective
SLICING THE DATA – LOOKING AT NUMBERS FROM CALENDER YEAR PERSPECTIVE • Return to profitability on a Calendar Year basis inspite of Covid19 impact in the year. ✓ Despite Covid-19 Impact on Calendar Year 2020, on account of Improved Revenue Quality, S Chand 3.0 Implementation , the group returns to Pr
Slide 11: Best 9 Month Performance in Company's History
BEST 9 MONTH PERFORMANCE IN COMPANY’S HISTORY - INSPITE OF COVID CRISIS DURING 9MFY21 • Turn Cash Flow positive in April to Dec period for the first time ever. Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs251m in 9MFY21 (vs. Rs96m in 9MF
Slide 12: Financials
Summary —— —_— S.CHAND GROUP 2. Financials www.schandgroup.com
Slide 13: Best 9 Month Performance in Company's History
BEST 9 MONTH PERFORMANCE IN COMPANY’S HISTORY - INSPITE OF COVID CRISIS DURING 9MFY21 46% 260% 66% 40% Revenue from Increase in Gross Reduction in Reduction in PAT Operations Margins EBITDA losses Losses (Growth YoY (YoY %) (YoY %) (YoY %) %) Learnflix – India’s Rs 56m 31% Most Affordable Learning A
Slide 14: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Q3FY21 9MFY21 Revenues from Operations (Rs M) Revenues from Operations (Rs M) 346 1,425 UP UP 46% 975 YoY 259% 729 YoY 96 46 Q3 FY19 Q3 FY20 Q3 FY21 9M FY19 9M FY20 9M FY21 REVENUES REVENUES EBITDA (Rs M) PAT (Rs M) EBITDA (Rs M) PAT (Rs M) -464 -592 -331 -1,042 EB
Slide 15: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 9MFY21 Revenue from Operations: Up 46% Operating expenses: Down 31% YoY EBITDA Loss: Down 66% YoY PAT Loss: Down by 40% 14
Slide 16: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 15
Slide 17: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Turn overall Cash Flow positive of Rs56m in April to Dec period for the first time ever in company’s history. Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs251m in 9MFY21 (vs. Rs96m in 9MFY20 and Negat
Slide 18: Receivable Days and Net Working Capital Days
CONSOLIDATED FINANCIAL PERFORMANCE Receivable Days and Net Working Capital Days 360 317 321 320 298 290 280 280 311 266 260 242 238 285 231 226 240 253 203 206 195 239 200 181 228 222 184 250 208 160 192 182 150 157 157 120 148 140 102 80 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY1
Slide 19: Consolidated Financial Performance – Operating Parameters
CONSOLIDATED FINANCIAL PERFORMANCE • Operating Parameters • Trade Receivables reduced to Rs2,044m during Q3FY21 vs. Rs3,349m as of Q4FY20. Do keep in mind, this receivables balance currently includes 9 month sales of Rs1,425m as well. Thus, in terms of March receivables, we have collected major port
Slide 20: Shareholding Structure
SHAREHOLDING STRUCTURE As of 11th February, Market Data Key Institutional Investors - As Other Institutional Investors holding less 2021 % Holding of Dec 2020 than 1% - As of Dec 2020 Market Capitalization (Rs Mn) 2,290 International Finance 8.0% Aadi Financial Advisors Corporation Price (Rs) 66 Tru
Slide 21: Result Conference Call Details
RESULT CONFERENCE CALL DETAILS 20
Slide 22: Looking Ahead
Summary — —— S.CHAND GROUP Looking Ahead www.schandgroup.com
Slide 23: S. Chand Group Journey So Far
S. CHAND GROUP JOURNEY SO FAR… S. Chand Other Ed-Tech Publishing – Apps and Products – SmartK, S. Chand, Vikas, myStudyGear etc Madhuban, New Saraswati, Chaaya Destination Success - Test Coach – App for Learnflix – Mobile Digital Competition exams Learning App Classroom S. Chand Publishing Destinati
Slide 24: S. Chand Group Product Strategy for the Future
S. CHAND GROUP PRODUCT STRATEGY FOR THE FUTURE Digital Content • Textbooks • Multimedia Analytics and Insights • Practice Tests • Student 01 • Teacher 05 • School Live Classes • Parent • Video conferencing platform • Calendar scheduling Teacher Connect • Recorded classes • Teacher published content
Slide 25: Looking Ahead
S.CHAND Getting ready for increased adoption of our Ed-Tech solutions in post Covid world FY21 Medium Term 4 . Target over Post Pilot phase, Development of Increasing the 5 Looking forward to Strong adoption of full roll out of new content based Debt free in 3 share fa tech mM USETS anormal sales Le
Slide 26: New Education Policy – Big Positive Going Ahead
NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD • Announcement of Draft New Education May, 2019 Policy (NEP) • The New Education Policy (NEP) was formally adopted by the Union Government in July, 2020. • Adoption of the New Education Policy • Expected release of the New National Curriculum Framework
Slide 27: Major Ed-Tech Initiatives – Annexure
Summary Major Ed-Tech Initiatives - Annexure 2.1 Learnflix 4. 2.2 Mylestone 2.3 Educate 360° 26
Slide 28: Learnflix – India's Most Affordable Learning App
LEARNFLIX – S. CHAND'S B2C & B2B2C OFFERING - INDIA'S MOST AFFORDABLE LEARNING APP Offering Digital content Adaptive test Self paced learning Analytics and reports Grades 6 to 10 Channel Sales & Marketing Support Revenue model B2B2C: Distributing through schools ➢ A strong sales team that connects w
Slide 29: Learnflix – Overview
LEARNFLIX – OVERVIEW Takes learning one step Concept ahead by providing Revision advanced individualized learning Try Out Concept Practice ➢ Currently available for grades 6th to 10th for maths and science subjects Chapter Video test ➢ The Spiral Learning Pedagogy ensures all concepts are well learn
Slide 30: Learnflix – Students Can Personalize Their Learning Paths
LEARNFLIX – STUDENTS CAN PERSONALIZE THEIR LEARNING PATHS… Flexibility to choose the time, Extremely focused and guided analytics to place and pace of learning help students, teachers and parents to monitor performance Reinforcement of previous Test level analytics 360° ➢ Score, Accuracy, Questions,
Slide 31: Mylestone – B2B Curriculum Offering
MYLESTONE – S. CHAND’S B2B CURRICULUM OFFERING Till grade 8 Teachers hand Student Digital content Progress report Training & support Resource kits Teacher/ Student book with Books with analytics app lesson plans Offering Grades 9 to 12 Digital content Adaptive test Self paced learning Analytics and
Slide 32: Mylestone – B2B Curriculum Offering
MYLESTONE – S. CHAND’S B2B CURRICULUM OFFERING 31
Slide 33: Mylestone – Strong Process to Assist School with Implementation
MYLESTONE – STRONG PROCESS IN PLACE TO ASSIST THE SCHOOL WITH IMPLEMENTATION Pre-implementation Post-implementation School diagnostic Training on School leaders Teachers Lesson Training on time Through survey classroom induction induction observation I management and display on-site visit Create and
Slide 34: Mylestone – The Business Case
MYLESTONE – THE BUSINESS CASE India is amongst the world’s largest K12 markets with strong preference for private schools K-12 enrolment in India Growth in K12 enrolment (in millions) 300 ➢ With over 245Mn K- 280 12 enrollments India Millions 260 250 250 250 245 240 240 is one of the largest 220 k-1
Slide 35: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? • Affordable private schools can be defined as schools charging annual fee in the range of 12k to 60k. Schools charging below 12k fees can be termed as low fee schools • According to DICE report, around 79% of private schools charge less than 5000Rs per month. That i
Slide 36: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? Affordable private schools face multiple challenges that negatively impacts learning outcome Lack of proper assessment and reports Poor quality of teachers and high attrition Assessments are based on rote learning and no analytical tool is used to Scarcity of trained
Slide 37: Educate 360° – An Overview
EDUCATE 360° – AN OVERVIEW P R O D U C T PA C K A G E E-Book Teacher’s Manual Printed Book Teacher Training Digital Supplements Assessment Integrated Platform Internet Links Concept Videos Ease of Access 36
Slide 38: Educate 360° – An Overview
EDUCATE 360 ° – AN OVERVIEW In Sync with the National Focusses on developing Education Policy (NEP)2020 2 1 st C e n t u r y S k i l l s •Art Education •Digital Creativity Digital Learning Learning Self- Confidenc Communicatio Periodic Collaborative e/ Self- n Assessment Learning Integrated Learning
Slide 39: Educate 360° – Product View
EDUCATE 360° – PRODUCT VIEW 38
Slide 40: Educate 360° – Teachers View
EDUCATE 360° – TEACHERS VIEW 39
Slide 41: Educate 360° – Students View
EDUCATE 360 ° – STUDENTS VIEW 40
Slide 42: Educate 360° – Teachers View
EDUCATE 360° – TEACHERS VIEW 41
Slide 43: Educate 360° – Students View
EDUCATE 360° – STUDENTS VIEW 42
Slide 44: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by S. Chand & Company Limited (“S. Chand” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, fin
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